Shah sees Nifty support at 21,900, picks banking, auto
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- Dharmesh Shah said the market is still not convinced despite a better day, citing profit‑booking on the SGX opening and limited conviction on cease‑fire news.
- Market breadth shows only about 10% of stocks above the 50‑day moving average and 15% above the 200‑day moving average, indicating oversold conditions and a potential intermediate bottom.
- Nifty is expected to find immediate support at 21,900 (the 200‑week EMA) and faces resistance at 23,300, with a break above possibly fueling a rally toward 23,800.
- Banking sector stocks, especially PSU and private banks such as Axis Bank and Kotak Bank, are deemed to have favorable risk‑reward after a 12‑15% correction.
- Auto sector includes M&M, Maruti, Ashok Leyland and tyre makers Apollo Tyre and JK Tyre, which Shah flags for upside amid high crude‑oil price impacts.
- Capital goods and metals such as Thermax, Siemens, ABB, L&T, SAIL and Tata Steel are identified as offering attractive risk‑reward in the current corrective phase.
- Market outlook suggests consolidation in the 21,900‑23,000 range before any higher‑side call, and recommends a staggered portfolio‑building approach over the next one to two weeks.
Why it matters: Investors gain a clear entry point as Shah identifies Nifty support at 21,900 and a consolidation zone up to 23,000, while banking, auto, capital‑goods and metals stocks are deemed to have favorable risk‑reward at current prices, offering upside amid oversold market breadth.
